Based on the association's report, the textile and textile products (TPT) and footwear industry experienced a slowdown in performance. This is due to decreased utilization in the fiber industry (20%), spinning (30%), weaving and knitting (50%), garments (50%), baby clothes (20-30%), and footwear (49%) . Some of these companies are said to have cut their working hours to 3-4 days. The usual working hours are 7 working days. Meanwhile, workers affected by layoffs from the textile and garment industry were reported to have reached 92,149 thousand people and from the footwear industry as many as 22,500 people. However, from the results of the report, cross-checks are being carried out in the field by the Ministry of Industry's internal task force (Kemenperin) and related institutions.
Responding to the above conditions, the Minister of Industry Agus Gumiwang Kartasasmita has prepared mitigation measures. One of them is to divert export destinations to several countries.
"First, we are trying to find new markets for exports for the industrial sector. We are trying to open access for markets to Latin and South America, Africa, Middle Eastern countries, and Asia," he said in a written statement, Tuesday (11/8/2022). ).
Agus also said that he would dominate the domestic market by strengthening and encouraging promotions. As well as, establishing cross-sectoral cooperation so that the program for Increasing the Use of Domestic Products (P3DN) continues to grow.
Other efforts that need to be encouraged are strengthening industrial competitiveness with easy access to raw materials, strengthening the business ecosystem, and strengthening the production system.
In the third quarter of 2022, the textile industry grew by 8.09% (yoy), but experienced a slowdown on a q-to-q basis, and contracted to -0.92 compared to the second quarter of 2022. However, cumulative exports continued to increase until with September 2022 of 15.6% when compared to data in the same period in 2021.
Meanwhile, the footwear, leather and leather goods industry grew 13.44% (yoy) during this period. Cumulatively, footwear exports up to September 2022 also continued to increase by 35.0% compared to the same period the previous year.
The growth performance of this sub-sector is still quite high, due to the diversion of orders from China and Vietnam to Indonesia. However, the Ministry of Industry continues to be aware of the impact of the global crisis.
Therefore, the Ministry of Industry established the Textile, Leather and Footwear Industry Crisis Security Task Force with the main task of making an inventory of the textile and footwear industry affected by the global economic crisis. The Task Force will develop an action plan and mitigation strategy based on an inventory of problems.
"The task force also coordinates with related ministries/agencies in the implementation of the mitigation strategy taken," concluded Agus